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Air Canada is undertaking a significant international push, just as the UK has voted to exit the European Union and terrorist attacks have swept Belgium, France and Turkey. Despite the pressure those circumstances are creating for revenue and yields, Air Canada has a reasonably positive outlook for demand in 3Q2016.

The airline has posted declines in yields and unit revenues for numerous quarters, but stresses that outcome remains a by-product of its strategy to grow internationally. Expansion by the company’s low cost subsidiary rouge has increased Air Canada’s mix of leisure customers and its growing average stage lengths have also pressured unit revenues. However, the company continually declares that its expansion is margin-accretive.

Air Canada no longer provides specific capacity guidance but has no plans to slow its growth in 2016, the bulk of which is directed to international markets. The company’s message is that its capacity increases should in fact be absorbed, even accounting for a major capacity push that started in late 2Q2016.

Flybe returned to profit in FY2016 – according to its latest definition of adjusted pre-tax profit, this was its first positive result since before its stock market flotation in 2010. Quibbles over profit definitions aside, it is apparent that Flybe's restructuring under CEO Saad Hammad since 2013 is continuing to make progress. Nevertheless, with an operating profit margin of just 1.4%, Flybe was one of the least profitable listed European airlines in 2015 (or nearest financial year).

Flybe is now into what Mr Hammad calls the 'Profitable Growth' phase of its turnaround. In FY2016 it returned to capacity and revenue growth after declines in the previous year. In FY2017 it is accelerating its capacity growth at a time when market conditions are producing very soft yields, but Flybe is determined to maintain cost discipline.

Of course, the achievement of profitability is only the first step in profitable growth. FY2016 will benefit from fuel cost tailwinds and this should help it to take the next step – even if it faces unit revenue headwinds.